RBI policy review to determine market run

The markets closed on a positive for the week ended buoyed by positive macro economic data, reform moves like issuance of licences to small finance banks, strengthening rupee and US Fed decision to maintain status quo on interest rates. Surging for second consecutive week, the benchmark indices — the Sensex and the Nifty —  closed the week 609 points and 193 points higher at 26,219 and 7,982. 

 

Movement of the indices in the near term will depend on macro economic data, progress of retreating monsoon, crude oil prices, movement of the rupee against the dollar and global market sentiment. 

 

The RBI’s monetary policy review is scheduled for September 29 and will pave the way for market movement in the near term. For the week ahead chartists predict trading range of 25,600-26.800 for the Sensex and 7,775-8,150 for the Nifty. Immediate supports for the indices are at 25,900 and 25,600 and 7,885 and 7,790.